GSA's $25.2M Custom House Renovation Contract Awarded to Grunley Construction for Envelope Restoration

Contract Overview

Contract Amount: $25,223,460 ($25.2M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2010-03-10

End Date: 2012-09-14

Contract Duration: 919 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS. RECOVERY CONSTRUCTION SERVICES FOR THE U.S. CUSTOM HOUSE ENVELOPE RENOVATION PROJECT. U.S. CUSTOM HOUSE, 200 CHESTNUT STREET, PHILADELPHIA, PA 19106-2912.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $25.2 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: TAS::47 4543::TAS. RECOVERY CONSTRUCTION SERVICES FOR THE U.S. CUSTOM HOUSE ENVELOPE RENOVATION PROJECT. U.S. CUSTOM HOUSE, 200 CHESTNUT STREET, PHILADELPHIA, PA 19106-2912. Key points: 1. Contract value of $25.2 million for a significant building envelope renovation. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Firm Fixed Price contract type indicates defined costs and risk allocation. 4. Project duration of 919 days highlights the scale and complexity of the renovation. 5. Located in Philadelphia, PA, impacting a historic federal property. 6. The contract falls under Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $25.2 million for a major building envelope renovation appears reasonable given the scope of work on a historic federal building. Without specific benchmarks for similar historic building restorations in Philadelphia, a direct value-for-money assessment is challenging. However, the firm fixed-price structure suggests that the government has a clear understanding of costs and has transferred significant cost risk to the contractor. The duration of 919 days also implies a substantial project, justifying the awarded amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids (no) suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing for the services rendered.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through multiple bidders vying for the contract, leading to potentially lower overall project costs.

Public Impact

The primary beneficiaries are the federal government and the General Services Administration (GSA) through the preservation and modernization of a critical federal asset. The services delivered include comprehensive renovation of the U.S. Custom House envelope, ensuring structural integrity and potentially improving energy efficiency. The geographic impact is localized to Philadelphia, Pennsylvania, specifically at 200 Chestnut Street. Workforce implications include employment opportunities for construction trades, project managers, and support staff involved in the renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during renovation of a historic building.
Delays in project completion could impact the usability of the federal facility.

Positive Signals

Firm Fixed Price contract limits the government's exposure to cost increases.
Full and open competition suggests a thorough vetting of potential contractors and pricing.
The project aims to preserve a historic federal building, ensuring its long-term viability.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale federal building renovations is significant, driven by the need to maintain and modernize aging government infrastructure. Comparable spending benchmarks would involve analyzing other GSA renovation projects or similar large-scale public works contracts, considering factors like building age, size, and complexity of the required work.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss:false, sb:false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Grunley Construction Co., Inc., may engage small businesses as subcontractors to fulfill portions of the work, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. Mechanisms likely include regular progress reports, site inspections, and contract performance reviews. Accountability is ensured through the firm fixed-price contract terms, which penalize the contractor for cost overruns. Transparency is generally maintained through GSA's public contract databases, though specific details of ongoing oversight might not be publicly disclosed.

Related Government Programs

Federal Building Renovations
Historic Preservation Projects
GSA Capital Investments
Infrastructure Modernization

Risk Flags

Potential for unforeseen conditions in historic building renovation
Risk of weather-related delays impacting schedule
Need for specialized materials and techniques for historic preservation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.2 million to GRUNLEY CONSTRUCTION CO., INC.. TAS::47 4543::TAS. RECOVERY CONSTRUCTION SERVICES FOR THE U.S. CUSTOM HOUSE ENVELOPE RENOVATION PROJECT. U.S. CUSTOM HOUSE, 200 CHESTNUT STREET, PHILADELPHIA, PA 19106-2912.

Who is the contractor on this award?

The obligated recipient is GRUNLEY CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2010-03-10. End: 2012-09-14.

What is Grunley Construction Co., Inc.'s track record with the General Services Administration on similar renovation projects?

Grunley Construction Co., Inc. has a history of working with the GSA on various construction and renovation projects. While specific details on past envelope renovation projects for historic buildings are not provided in this data snippet, their experience with the GSA suggests familiarity with federal contracting procedures and requirements. A deeper dive into GSA's contract database or past performance reviews would be necessary to fully assess their track record on similar projects, including on-time completion, budget adherence, and quality of work. Their ability to win this $25.2 million contract under full and open competition implies a competitive standing and likely a satisfactory performance history with the agency.

How does the $25.2 million contract value compare to similar building envelope renovations for historic federal properties?

Benchmarking the $25.2 million contract value against similar projects requires access to a database of comparable federal building renovations, considering factors like square footage, age of the building, specific scope of work (e.g., facade restoration, window replacement, roofing), and geographic location. Historic buildings often incur higher costs due to specialized materials, preservation techniques, and unforeseen conditions. Without specific comparable data, it's difficult to definitively state if this value is high or low. However, the firm fixed-price nature and the 919-day duration suggest a substantial and complex undertaking, making the awarded amount plausible for a project of this scale and nature.

What are the primary risks associated with renovating the U.S. Custom House envelope, and how are they mitigated?

Key risks in renovating a historic building's envelope include the discovery of unforeseen structural issues, hazardous materials (like asbestos or lead paint), and damage to delicate historic fabric during the work. Weather-related delays are also a significant risk, especially for exterior work. The firm fixed-price contract structure mitigates financial risk for the government by capping costs. Mitigation strategies employed by the contractor would likely include thorough pre-construction surveys, detailed planning, use of specialized preservation techniques, contingency planning for unexpected findings, and robust project management to adhere to the schedule and minimize weather impacts.

How effective is the firm fixed-price contract type in ensuring value for money for this specific renovation project?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For the U.S. Custom House envelope renovation, the FFP structure transfers the risk of cost overruns to Grunley Construction Co., Inc. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. While it can lead to higher initial bids to account for contractor risk, it provides budget certainty for the GSA and prevents unexpected cost increases. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to execute the work within budget.

What is the historical spending pattern for building envelope renovations by the GSA, and does this contract align?

Historical spending patterns for GSA building envelope renovations vary widely based on the number, size, age, and complexity of the buildings in their portfolio. GSA manages a vast inventory of federal buildings, many of which are historic and require significant maintenance. This $25.2 million contract for the U.S. Custom House represents a substantial investment in a single property. To determine alignment, one would need to analyze GSA's aggregate spending on similar renovation projects over several fiscal years. This contract appears to be a significant, but potentially typical, investment for a major renovation of a historic federal landmark, reflecting ongoing efforts to preserve and modernize federal assets.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-03P-09-AZ-C-0051

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15020 SHADY GROVE RD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,223,460

Exercised Options: $25,223,460

Current Obligation: $25,223,460

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline